Crispr Therapeutics shares tumble after significant earnings miss
On Monday, Raymond (NSE:RYMD) James analyst Ryan Deschner updated the firm’s outlook on ARS Pharmaceuticals Inc (NASDAQ:SPRY), increasing the price target to $32 from the previous $28, while reaffirming a Strong Buy rating on the company’s stock. The adjustment reflects an optimistic view of the company’s recent earnings and its commercialization efforts for its product neffy. According to InvestingPro data, SPRY has demonstrated strong momentum with a 42.89% return over the past year and an 8.04% gain in the last week, supporting the analyst’s bullish stance.
Deschner’s comments highlighted the company’s advancement of its coverage goal, now aiming for over 80% by July 1, earlier than the previous target of the end of the third quarter in 2025. Additionally, the availability of a 1mg dose of neffy and the commencement of direct-to-consumer (DTC) marketing activities in May were noted as positive developments. With a market capitalization of $1.21 billion and an overall GREAT financial health score from InvestingPro, the company appears well-positioned to execute its growth strategy.
The Raymond James analyst elaborated on the changes made to the financial model for ARS Pharmaceuticals, which now anticipates higher U.S. net sales projections in future years, with peak worldwide sales expected to reach $1.4 billion. This revision is based on the expectation that neffy will quickly gain a significant share of the market currently dominated by injectable epinephrine products and will expand into new market segments. The company’s strong financial position is evident in its current ratio of 14.26, indicating robust liquidity to support its growth initiatives.
The updated model also includes detailed forecasts for prescription numbers in both the new and existing markets for epinephrine treatments, an increase in sales, general, and administrative (SG&A) expenses to support commercialization efforts, and the incorporation of estimated milestone payments from partnerships with ALK, Alfresa, and Pediatrix.
In the income statement, the model now accounts for the $73.5 million portion of the upfront payment from ALK that was recognized in the fourth quarter of 2024. This update removed the previous model’s flat amortization schedule, indicating a refined approach to financial reporting by ARS Pharmaceuticals. For deeper insights into SPRY’s financials and growth potential, including exclusive ProTips and comprehensive valuation metrics, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, ARS Pharmaceuticals Inc. reported a significant earnings beat for the fourth quarter of 2024, with an earnings per share (EPS) of $0.51, surpassing the expected loss of $0.13. The company’s total revenue reached $86.6 million, far exceeding the forecasted $5.1 million, driven by strong collaboration and product revenues. The company ended the year with $314 million in cash and cash equivalents, providing a solid financial foundation for future initiatives. Raymond James analyst Ryan Deschner maintained a Strong Buy rating on ARS Pharmaceuticals, setting a price target of $28.00, reflecting confidence in the company’s progress and market strategy. ARS Pharmaceuticals has made strides in patient access to its product, neffy, with a recent agreement with United Health Care ensuring broader access starting April 1. The company anticipates achieving 80% commercial coverage by early Q3 2025, aligning with the back-to-school season, a period of increased demand. These developments underscore ARS Pharmaceuticals’ efforts to enhance market reach and strategic positioning.
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